After nearly four years of strict limitations on lending to non-Kuwaitis, major banks in Kuwait have begun to adjust their approach, signaling a shift in policy aimed at stimulating credit growth amidst a slowdown in individual financing since 2023.

Al-Rai learned from banking sources that major institutions have communicated internally about lifting restrictions on financing for residents, a move that was imposed during the COVID-19 pandemic. However, this shift is not without constraints. Sources reported that the new lending trend is more selective, with stringent criteria including a minimum ten-year end-of-service bonus and employment with a reputable, financially stable company.

Under the latest guidelines, non-Kuwaiti government employees earning salaries starting at 250 dinars are eligible for loans, while those in the private sector must earn a minimum of 500 dinars. Additional benefits, such as expanded end-of-service rewards, are also required, with banking institutions wary of default risks across all scenarios.

Eligible professions for borrowing include traditional roles like judges, doctors, engineers, and teachers, as well as newer categories such as cooperative society employees, construction supervisors, journalists, and technicians, among others.

Customers meeting the criteria are entitled to financing with an additional margin above the value of the reward, varying based on job stability and grade. However, loans are capped at 25,000 dinars, in line with Central Bank regulations. Installment limits are determined by solvency, including salary, end-of-service benefits, and existing deposits.

This shift in banking policy signals increased competition in the sector, as major banks vie for non-Kuwaiti customers, previously served primarily by medium and small banks. The move reflects a broader strategy to attract creditworthy borrowers amid a challenging economic landscape.

While banks maintain a conservative approach to lending, citing risk management concerns, the decision to ease restrictions underscores a need to balance prudence with growth aspirations. Banks remain cautious in financing government jobs subject to Kuwaitization initiatives, with certain roles excluded from lending eligibility.

The evolving landscape of lending to expatriates reflects a strategic response to market dynamics, as Kuwaiti banks navigate regulatory requirements and competitive pressures to drive sustainable growth in the banking sector.

A Gulf-bound plane, en route to Europe, was compelled to make an emergency landing at Kuwait Airport following a tragic incident involving the demise of a passenger. Sources confirm that the aircraft diverted its course to Kuwait Airport due to a critical medical emergency concerning one of its passengers. Upon touchdown, medical personnel swiftly attended to the individual, ultimately confirming the unfortunate passing of the passenger, identified as a Filipino national.

In response, Kuwaiti authorities swiftly intervened, taking custody of the deceased and initiating necessary procedures. The case was duly registered, and investigative measures were promptly set in motion, culminating in the referral of the body to the forensic department for further examination.

Following the completion of requisite procedures, the flight was able to resume its journey, albeit after a somber delay prompted by the unforeseen circumstances.

The Public Authority for Civil Information has called on approximately 5,500 individuals to update their residential addresses by providing supporting documents within 30 days, starting from Sunday, May 26.

The Authority announced the cancellation of residential addresses for 5,501 people due to either homeowner's approval or demolition of the building. These individuals are required to register their new addresses within the 30-day period or face penalties under Article 33 of Law No. 32 of 1982, which stipulates a fine of up to 100 dinars per person.

Director General Mansour Al-Mizan explained that changing a residential address invalidates the civil card. Affected individuals must visit the Authority’s headquarters or branches to update their card data by presenting a rental contract, rent receipt, and a statement from the homeowner verifying the data. If the cardholder owns the property, they must bring the new property document.

Al-Mizan noted that this process can also be completed via the Sahel application, eliminating the need for an in-person visit. If the Authority discovers an address deletion, a text message alert is sent through (Sahel). If the individual does not respond, their civil card will be suspended and canceled from the Kuwait Mobile ID application, though the data will remain on the Sahel app. Additionally, their name will be published in the Govt Official Gazette (Kuwait Eliom), and failure to comply will result in judicial referral.

Al-Muthen urged government and private agencies to verify the validity of civil cards and not rely solely on the card’s optical image for transactions or contracts without confirming its status in (Sahl) or (Kuwait Mobile ID).

The Interior Ministry intends to impose harsher penalties on anyone who violates traffic regulations in a bid to enhance road safety and control reckless driving, says a reliable source from the government.

According to the source, the proposed amendments to the Traffic Law that will be approved soon include the following: 

One to three years' imprisonment or a fine ranging from KD 1,000 to KD 3,000 for driving under the influence of drugs or alcohol.

Three months in jail or a KD 300 fine for using a mobile phone while driving. – Three months' imprisonment or a fine of KD 500 maximum for driving beyond the speed limit.

Two months jail time or a fine of KD 200 maximum for violating the tinted windows regulation.

The new law also addresses other reckless driving habits as follows:

KD 75 fine for leaving children or pets unattended in a car or allowing them to protrude from windows. – Fine ranging from KD 100 to KD 200 for allowing children under 10 years old to sit in the front seat or not using the child seat at the back seat.

Fine ranging from KD 250 to KD 500 for failure to give way too emergency vehicles like fire trucks, ambulances and police cars. –

Imprisonment for three months or a fine ranging from KD 200 to KD 500 for beating the red light.

The source affirmed that these strict penalties aim to deter precarious behavior on the roads and to raise public awareness of the importance of adopting safer driving habits.

In a move aimed at expanding specialized healthcare services and enhancing accessibility to integrated health facilities, Dr. Ahmed Al-Awadhi, Minister of Health, has issued a ministerial decision mandating the establishment of a neurosurgery department at Jaber Hospital.

Under the same initiative, another decision has been issued appointing Dr. Tariq Al-Sheikh as the head of this newly established department, with both decisions set to take effect immediately.

The ministerial decree by the Minister of Health reflects the Ministry’s commitment to its strategic plans aimed at bolstering healthcare provisions across the country. These plans prioritize the delivery of high-quality healthcare services in all governorates, considering population distribution, geographical coverage, and the need for streamlined access to medical services, thereby reducing wait times and ensuring prompt appointment scheduling.

The Ministry of Interior has announced that it will not allow those who violated the Residency Law to leave the country or legalize their status after June 17 — the humanitarian deadline it set for violators to leave or amend their status without paying fines. Security sources confirmed to the daily that the ministry will intensify its campaign against the Residency Law violators once the deadline ends, indicating it will pursue those who violated the law and then deport them.

Sources pointed out that violators can amend their status through legal frameworks within the abovementioned deadline in order to avoid being pursued by security personnel. Sources also warned that those who will be deported during the intensified inspection campaign can no longer return to the country. Last year, the ministry arrested and deported about 40,000 Residency Law violators; and the number of violators before the amnesty was estimated at about 120,000, sources added.

Rashid Al-Owaihan, the Controller of Trademarks and Patents at the Ministry of Commerce and Industry, emphasized the detrimental effects of trademark imitation, citing its role in deceiving consumers and perpetuating commercial fraud through the sale of poor-quality, counterfeit, and non-original goods, reports Al-Jarida daily. This not only harms consumers but also inflicts financial losses on original brand owners and companies.

Al-Owaihan underscored the pivotal role of trademarks in fostering competition and sustaining the commercial sector. Protecting trademark owners is essential for facilitating advertising and familiarizing the public with their products, he explained, stressing the importance of trademark registration. Al-Owaihan outlined the ministry’s proactive approach to combating trademark imitation, including conducting inspection campaigns to identify and penalize offenders.

According to the law, imitation of trademarks can result in imprisonment for one month to three years or financial penalties to compensate for damages incurred. Regarding the ministry’s plans for enhancing its operations, Al-Owaihan revealed ongoing efforts to strengthen the monitoring and protection of industrial intellectual property. This includes the development of a comprehensive violations system to electronically track and prosecute offenders, ensuring strict adherence to legal provisions. By implementing robust measures to safeguard trademarks and patents, the ministry aims to uphold consumer trust, promote fair competition, and safeguard the interests of original brand owners and businesses in Kuwait’s market.

A recent report by Astute Analytica predicts phenomenal growth for the electric vehicle (EV) market in Kuwait, forecasting a market value of $1.12 billion by 2032, up from $51.2 million in 2023. This represents a staggering compound annual growth rate (CAGR) of 42% over the next eight years.

The anticipated surge in EV adoption in Kuwait is attributed to several key factors:

The government’s active promotion of sustainable and environmentally friendly transportation is fostering a supportive environment for EV adoption.

Growing awareness among consumers about the environmental benefits of EVs is driving demand for these eco-conscious vehicles.

Continuous advancements in EV technology are making them more affordable, accessible, and attractive to a wider range of consumers.

Infrastructure investments

Kuwait’s commitment to reducing carbon emissions and embracing renewable energy sources is evident in its significant investments in EV infrastructure. The development of charging stations across the country and incentives for EV purchases are crucial elements of Kuwait’s strategic commitment to decarbonization.

In addition to government support, the Kuwaiti EV market is witnessing a surge in partnerships between local and global automakers. These collaborations aim to strengthen the EV ecosystem, encompassing manufacturing, distribution, and after-sales services, ensuring a comprehensive and sustainable growth model for the country’s EV sector.

Supportive factors

Market analysts highlight that the growing diversity of EV models, advancements in battery technology, and the overall shift towards more sustainable practices in Kuwait will continue to propel the EV market forward. They note that the Kuwaiti population, particularly younger and environmentally conscious segments, is increasingly favoring EVs over traditional fuel-powered vehicles.

A transforming auto industry

The anticipated growth of the EV market in Kuwait signifies a significant transformation in the automotive sector. This shift not only underscores the potential for economic diversification but also positions Kuwait as a frontrunner in the transition towards sustainable transportation.

While the Civil Service Commission recently acknowledged that the shift allowance related to the nature of the work “is not considered part of the salary, like other allowances such as the social allowance, specialization allowance, etc.,” loan officers in local banks opened an extensive discussion on this matter.

They concluded that compliance must be made when granting loans based on the client’s net salary, excluding any financial allowances he receives unless they are included in his net salary, even if they are listed on his salary certificate.

The sources indicated that banks were providing loans to Kuwaiti government employees based on their total salary, which includes all continuous and intermittent allowances they receive, such as nightlife allowance, food allowance, and value allowance.

In essence, this procedure means that the loan value will be calculated based on the net salary, without including irregular allowances, especially those that the employee does not receive during leave as they are related to actual working hours.

The sources indicated that the bureau recently decided to separate the allowances from the components of the net salary. This means, in banking terms, the value of the loan granted to the employee will decrease in the future by the equivalent amount of the net income, even if the total income remains unchanged.

Sources indicated that, following the Civil Service Commission procedure, the net salary of some employees in bank accounts will decrease by 10 to 20 percent, especially those with shift allowances, nighttime bonuses, food allowances, and other interrupted and unrelated bonuses. This reduction occurs because employees are not entitled to these allowances during vacations.

The sources pointed out that the bureau considered the continued disbursement of shift allowance related to the nature of work in line with the categories mentioned in the Civil Service Commission’s decision and its amendments regarding compensation for overtime assignment and the shift system.

This decision allowed the entity to specify numbers of employees to complete work and continue public services for citizens around the clock. Accordingly, bank officials will deduct these allowances from employee’s total salary, based on which the value of the loan is estimated.

Certainly, the banking discussion raised questions about how banks will handle employees who borrowed before the decision of the bureau to separate salary components. Specifically, those exposed to the scenario of having the regulatory-deducted deduction rate increase to a maximum of 40 percent of their salary after their net salary decreased.

Additionally, sources confirmed that there will be no change from the banks in dealing with existing borrowers. Their monthly deductions are scheduled to continue without any increase, while the net salary mechanism is expected to be applied to new borrowers.

Sources reported that banks are continuing to target newly appointed Kuwaiti employees or candidates for appointment with financing packages and distinctive offers. This effort aims to stimulate credit movement, which has faced widespread slowdown for a long time, resulting in a decline in credit growth rates to tangible levels.

Sources stated that new employees have become a major target for banks looking to expand their customer base. This trend is due to the growing slowdown in movement among individuals and companies, driven by the decline in the business environment in recent periods and the rise in interest rates to historical levels. Borrowing has become very expensive and selective based on the necessary need.

Sources stated that new employees have become a major target for banks looking to expand their customer base. This trend is due to the growing slowdown in movement among individuals and companies, driven by the decline in the business environment in recent periods and the rise in interest rates to historical levels. Borrowing has become very expensive and selective based on the necessary need.

On the other hand, the General Insurance Corporation has renewed its calls for all banks to provide special banking offers for retirees, including lending and attracting deposits. It noted that there is widespread interest among many credit policy officials in local banks in this segment, to the extent that they are willing to provide special financing offers for retirees. This is accompanied by the provision of several fee-free services and the possibility of granting retirees specific loans with zero interest up to 25 thousand dinars.

Central Bank of Kuwait allocates KD 240 million bonds and Tawarruq at 4.375% return

The Central Bank of Kuwait announced that it allocated the latest issuance of bonds and Tawarruq with a total value of KD 240 million for a period of three months, offering a return rate of 4.375 percent.

The Ministry of Interior has launched an awareness campaign entitled, “You Can Leave the Country or Amend Your Legal Status,” for all those who violate the Residency Law. The ministry advised violators to visit the Residency Affairs Department in their respective areas to complete the necessary procedures to leave the country or legalize their status.

Last March, the ministry started implementing amnesty to allow those who violated the above-mentioned laws to leave the country without paying fines or legalize their status upon payment of fines. It has been reported that the number of violators was estimated at 120,000 before the implementation of amnesty and a large number of these violators have benefited from the humanitarian gesture since March.

According to government data released on Sunday, Kuwait’s annual inflation rate increased to 3.17% in April, up from 3.02% in March. The Central Administration of Statistics reported on its website that several sectors contributed to this rise.

The food and non-alcoholic beverages category saw a significant increase of 5.79%, while the prices of cigarettes and tobacco edged up by 0.22%. Clothing and footwear prices also experienced a notable rise of 5.95%, and the housing services group increased by 1.41%.

Inflation, defined by the rise in prices of goods and services, can be categorized into four main types based on the speed of price increases. Additionally, there are specific forms such as asset inflation and wage inflation. Economists often classify demand-pull inflation and cost-push inflation as separate categories, alongside inflation driven by an increase in the money supply.

Despite the reported figures, some experts argue that the inflation index in Kuwait does not fully capture the true extent of inflation in the country.

The World Health Organization (WHO) announced that the new Coronavirus variant ‘FLiRT’ as the most contagious and dangerous in the world, especially with the expected rise in air temperature this year. In an exclusive statement to the daily, Internal Diseases and Epidemiology Consultant at Adan Hospital Dr. Ghanem Al-Hujailan clarified that the entry of ‘FLiRT’ into the country is inevitable, coinciding with the return of students from abroad and the start of the travel and summer season. He said it is expected to appear in Kuwait in the middle of June.

Al-Hujailan pointed out this variant is way different from Omicron, because it is more contagious and resistant to vaccination as a result of numerous mutations in its genetic chain. He said the antibodies formed through repeated infections made it more resistant to vaccination, so it is considered one of the most evasive variants. He confirmed there is no danger at present, so there is no reason for fear and anxiety and it is not necessary to take additional preventive measures; because ‘FLiRT’ is like the rest of the Corona variants and the same mechanism will be used to deal with it. He added the symptoms of infection are the same as those of previous variants — high fever, congestion in the upper part of the respiratory system and other known influenza symptoms; but it is more contagious and resistant to vaccination, which means those who have been vaccinated are also at risk of infection.

Abyan Building Construction Company in Kuwait has achieved a significant milestone by successfully constructing the first large water tank using 3D-printed concrete technology.

The tanks, towering at 4.5 meters in height and boasting a diameter of 7 meters, were created through the innovative process of 3D printing with low-cost concrete. Remarkably, the entire construction process was completed in just five days, showcasing the remarkable efficiency of utilizing cutting-edge technology to achieve substantial savings in both time and labor.

Utilizing the 3D construction printer “COBOD,” the project realized a remarkable 25 percent reduction in the amount of concrete and reinforcing materials required compared to conventional construction methods. This reduction not only translates to significant cost savings but also contributes to minimizing resource consumption and material wastage, promoting sustainable construction practices.

Unlike traditional tank construction methods, which are often constrained by uniform wall thickness throughout, 3D printing technology offers unparalleled design flexibility. Engineers can now tailor the thickness of the walls as needed, optimizing material usage and enhancing overall construction economics and sustainability. This newfound freedom in design enables engineers to innovate and improve upon traditional structural designs, ensuring greater efficiency and resource conservation in construction projects.

In response to concerns raised by the Teachers Association regarding restrictions on school staff’s presence after official working hours, Hessa Al-Mutawa, the Acting Assistant Undersecretary for Public Education at the Ministry of Education, has announced a policy change allowing teachers and administrative staff to remain in schools as necessary.

The decision follows observations made by the Teachers Association regarding the bulletin that previously prohibited the presence of educational and administrative staff after official working hours, citing its adverse impact on school operations. Hamad Al-Houli, the President of the Association, commended the cooperation of Undersecretary Al-Mutawa for her swift response to the concerns raised. Undersecretary Al-Mutawa issued a letter dated May 14, permitting staff presence in schools after official hours based on actual work requirements, subject to coordination and approval from the educational district for implementation.

According to regulatory guidelines and to ensure security and safety, testing, monitoring, and administrative tasks are deemed essential work needs, necessitating the presence of staff after official hours. It is mandated that the responsible personnel and their supervisors are aware of staff presence based on job hierarchy, and they are required to report any staff or student presence after official hours to the educational district for record-keeping purposes.

Dr. Noura Al-Mashaan, the Minister of Public Works and Minister of State for Municipal Affairs, has issued a ministerial decision to amend the advertisement regulations to increase the country’s revenues.

The new regulations introduce fees for certain types of advertisements that previously did not require financial compensation and include adjustments to existing terms.

Key highlights of the changes include:

• A fee of five dinars per month per square meter for seasonal advertisements.
• A fee of seventy-five dinars per year per square meter for animated electronic advertisements.
• A fee of fifty dinars per year per square meter for fixed and non-moving electronic commercials.

The Ministry of Health has launched rigorous inspection campaigns across health districts, hospitals, and various departments to ensure compliance with overtime assignments, as reported by a local daily.

According to the report, the ministry has issued an administrative directive stating that employees found absent during these inspections will be removed from the overtime lists.

The report highlights numerous instances where employees did not attend their assigned overtime duties.

An expatriate’s bank account was emptied as soon as he clicked a link to pay KD 1, reports Al-Anba daily. According to the victim, he did not share the OTP with the woman involved in this incident, yet his bank balance was reduced to zero within minutes. A case of bank document forgery was registered and classified as ‘felony’. A security source revealed that an expatriate, born in 1999, got a telephone call from a woman claiming to be a bank employee. She informed him that the bank would send him a link to pay KD1 in order to activate his account.

Shortly after, he received a call from another phone, not the woman’s mobile phone, via WhatsApp. He stated that he had attempted to pay KD1 through the link, but received a message indicating that the transaction was not completed. However, he was shocked to discover that his entire balance of KD343 was lost. He confirmed that he received the OTP, but did not share it.

Furthermore, the security source pointed out that the expatriate’s mobile phone might have been hacked, allowing the gang to use the OTP code. He urged the public to be cautious and not to respond to any suspicious requests. The Central Bank of Kuwait has issued multiple warnings about gangs stealing people’s accounts using various methods and requesting private banking information that no legitimate bank or employee would ask for.

The Ministry of Education is intensifying efforts to ensure its workforce meets the required educational qualifications, with a looming deadline prompting urgent action from tardy employees. As the specified period draws to a close, the Ministry has issued a stern warning, cautioning employees to swiftly fulfill their academic requirements or face legal consequences.

Matrook Al-Mutairi, Acting Undersecretary of the Administrative Sector, disclosed that a staggering 37,100 employees are yet to furnish copies of their academic credentials on the Ministry’s designated website, a mandate stemming from the Civil Service Commission’s directive outlined in letter No. 2023116465. The Ministry initially circulated a bulletin on March 11 to address this issue, emphasizing the importance of compliance.

Failure to meet the stipulated qualifications affects 37,010 employees within the public education sector, necessitating immediate action to rectify the situation to avoid potential repercussions. Al-Mutairi stressed the urgency of completing the requisite upgrades within a week of the specified deadline to evade accountability.

In a separate development, Ahmed Al-Majidi, Director of the Library Administration, announced the commencement of electronic inventory procedures in school libraries for the academic year 2023/2024. This initiative aligns with educational policy’s thrust towards digital transformation, aiming to enhance operational efficiency.

Al-Majidi informed educational district directors that user credentials would be dispatched to schools to kickstart the electronic inventory process, streamlining library management and accessibility.

Meanwhile, the Information Systems Department at the Ministry of Education has unveiled a specialized program to manage high school exams electronically, bolstering data security and confidentiality. M. Hoda Al-Mutairi, Director of Administration, highlighted the completion of an electronic program tailored to central exam control, ensuring restricted access to student data.

The Control Management System, a bespoke framework developed for managing exam procedures across the scientific, literary, and religious education domains, delegate specific privileges to authorized personnel within schools and educational districts. Al-Mutairi emphasized the system’s capability to facilitate seamless data exchange while upholding confidentiality protocols.

Key features of the system include personalized user accounts with designated access rights, enabling the swift and secure transmission of student information. Additionally, the system grants schools and educational districts access to standardized test answers during the grading phase, further fortifying data integrity measures.

As the education sector embraces digital advancements, these initiatives signify a concerted effort by the Ministry of Education to modernize operations while ensuring compliance and efficiency in critical processes.

This year’s Eid al-Adha holiday will be four days if Arafat Standing falls on June 15 (Saturday), reports Al-Anba daily. Then, the days of Eid will be on June 16, 17 and 18 and work will resume on June 19. If Arafat falls on June 16 (Sunday), the Eid days will be on June 17, 18 and 19; then June 20 (Thursday) will be declared a rest day since it falls between two holidays. Thus, the holiday will be nine days, as work will resume on June 23 (Sunday).

According to sources, the Civil Service Commission (CSC) will issue a holiday circular in advance. If the holiday is four days, employees who wish to extend it can submit a request for periodic leave for June 19 and 20. It is important to note that absence on these two days without submitting a leave request in advance will result in the entire period being counted as absence from work, sources added.

WhatsApp, a widely used messaging app, announced three new updates over the last month, focusing on ensuring privacy, enhancing security, and increasing convenience.

UAE users reported receiving notifications from the Meta-owned company as the messaging platform announced these updates through direct messages to millions of WhatsApp users.

Undo 'delete for me'

Have you meant to delete a message for everyone, only to realise that you clicked on "delete for me"? The most recent update enables users to undo "delete for me."

Once you click on 'delete for me', a pop-up will appear at the bottom of the screen.

Click on 'undo.'

The message you sent will be back and can then be deleted for everyone, or you can choose to keep it in chat.

Pin important messages

You no longer need to constantly search for messages. To ensure convenience and ease of access, Whatsapp rolled out an update that enables you to quickly access important messages, by following these steps:

To keep a message at the top of your chat, long-press and click on the "Pin" option.

Select the duration of the pin, which could be 24 hours, 7 days or 30 days.

Group admins can also allow members to pin messages in a group chat.

Protect backed up messages

Messages on Whatsapp are already end-to-end encrypted. Now, you can add an additional layer of security by turning on encrypted backups, and doing the following:

Go to settings, and click on 'chat backup' under 'chats'.

Tap on the end-to-end encrypted backup, and you can then set a password or a 64-digit encrypted key to ensure privacy.

According to the update, even Whatsapp will not be able to access these messages.